Some more info concerning the problem with 3D on intel cards.
I paste my conclusions I sent via mail with someone.

Q: - Just one thing I have noticed when testing here is that even
though "direct rendering" is active I don't like the graphics performance
when testing with for instance google earth.
In the computer I am testing with has the graphics card is "Intel GMA
X4500HD (Graphics Media Accelerator)".

Fatal server error:
Couldn't bind memory for HW status
----------------
I never saw such an error before.
Maybe with the log of your former setup, I can get an important hint.

Please also attach /etc/X11/xorg.conf.

I then was sent the Xorg.0.log with the "original" drm.ko, X starts here.
My conclusion:
ok, this clarifies things, but no solution.

------------
[drm] failed to load kernel module "i915"
(EE) [drm] drmOpen failed.
(EE) intel(0): [dri] DRIScreenInit failed. Disabling DRI.
-----------
As you now have the "wrong", first drm.ko, the required dri-kernelmodule (i915.ko) cannot be loaded.
So you have no dri.
In consequence you get:
-----------
(II) GLX: Initialized DRISWRAST GL provider for screen 0
----------
This is the SOFTWARE renderer for OpenGL.
It is slow, but works.

So it was correct (in theory) to use dri.bak instead, because it enabled hardware accellerated dri.

Seriously, I'm tempted to try the new 2.6.29 kernel to see if I can mount swap files (in FAT partitions) again. Currently I don't have the time to even make a service pack for this puplet. But I'm compiling linux-2.6.29 right now (reason: swap files)... problem: it uses SquashFS-4 which is not compatible with older versions.

To learn more about to install/upgrade intel graphics drivers [read this]. Basically you will need:

I googled before I fell asleep.
These memory errors are common for G33 and G45 chips since 2007 and xorg 6.8.2.
There are several hacks around.
Basically they seem to patch some files from the kernel, and the intel xorg driver.
They concern the agp files of the kernel, to reserve more memory for these "new" chips.
It is strange, that these hacks are not included in ther pretty new files, we have in Ultrapup. Some messages indicated, that the hacks were not very proper, and so rejected in the official releases.
Also other new distros still have this problem, so there really seems to be some fundamental issues.
Some notes indicated, that a while ago, the pci related stuff in the kernel was rewritten, and this could conflict with intel drivers.
This makes it very difficult for me, to give a "remote" diagnose or solution.
Following wows hints in the last message might be a good solution.
Intel is currently very active in adding code for the new kernels as this will soon introduce a new rendering structure (dri2), but this also requires a new xorg. So no idea, if they still fix the current drivers.
Maybe, they also fixed the mentioned issues in the latest drivers.

Start X by selecting Xorg in the xorgwizard.
As it has a wrong drm module, you will have no acceleration, and X should work (without acceleration).
Now rename
/lib/modules/2.6.28.5/kernel/drivers/gpu/drm/drm.bak to drm.ko.

Then install the 2 pets.
Then exit X.
Now type:
xwin

If it does not work, run xorgizard, and use Xvesa.
Start X, and attach your /var/og/Xorg.0.log

According to reports, the Intel X4500HD (G45 Express chip) works with accelerated 3D now.
Mark

In git, there are even newer drivers, but I had not seen that before.
http://cgit.freedesktop.org/xorg/driver/xf86-video-intel/
I'm just searching around again, as I also would like to try newer Ati drivers.
I also had read in the past, that the git drivers are not always recommended, as they sometimes include very new, unstable features.

So for the pets I followed the links, that were given on the first site.
For intel, I chose 2.6.0, as that was officially recommended by Intel.

Libdrm can be found here:
http://dri.freedesktop.org/libdrm/
For the pets above, I just tried the newest one.
The intel driver needed at least 2.4.4, so I thought, 2.4.5 would also be ok.

Then the compilation was easy for both:
./configure --prefix=/usr/X11R7
make
new2dir make install

-------------
I encountered one strange thing (everything was done in Newyearspup 02 rc7, I also had compiled the drivers in it):
After installation, X did not start. I currently used the Ati 9.2 catalyst driver.
I had restarted X to see, if the new files would break something.
So I ran xorgwizard, to use the vesa xorg driver, that worked.
Running xorgwizard again, choosing the catalyst driver again, X now works again.
I'm not exactly certain, what had caused that, and will do some more tests in the next days with different drivers.
Maybe still the old libdrm was in memory, so there was a conflict with some of the new files, hard to say afterwards.